For the CEO of Prime Securities, Mohamed Megahed, embarking on IPOs is a good step toward boosting the EGX and enhancing its control among stock markets worldwide.
“The opted companies to be offered are good selections as they include big indexed names, in addition to new names which are considered as a successful mixture that whet the appetite of investors,” Megahed stated.
However, the CEO pointed out that the privatisation programme that had been applied in the 1990s played an important role behind the breakthrough that the EGX experienced in this era, raising the trading exchange volume to unprecedented levels, referring to how new offerings will nourish the EGX– especially after a wave of companies recently left the EGX.
Furthermore, he added that companies which belong to petrochemical, petroleum, and banking sectors will refresh the market, thus improving the performance of these companies in the market and attracting more investors due to the increased trading exchange volume.
He also considered that the offering of Eastern Company is hard to be evaluated currently, as it is an already listed company. In addition, the 4.5% additional offered stake is too small to be able to reflect a real evaluation of the IPOs.
